Airline ancillary revenue has reached more than $27.1 billion against $2.45 billion five years ago.
The latest estimate comes from a study of 53 airlines charging for checked bags and earning commission from car rental.
The 80-page CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany shows that paid-for extras can account for more than 38% of an airline’s revenue.
“The consistent growth of extra revenue from three key sources demonstrates how this activity has become a crucial component of airline income,” according to the report.
“Carriers worldwide rely upon the revenue from frequent flier activities, a la carte features, and commission-based products, to create profits in an era of high fuel costs – while keeping fares modest in a recession-weary world.”
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